PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) announced a monthly cash distribution of $1,119,292.92 ($0.092003 per Trust Unit) for August 2022, payable on September 15, 2022. The distribution is primarily based on June 2022 production. Current month oil sales volumes decreased to 28,114 Bbls, while natural gas increased to 34,980 Mcf. Oil cash receipts were $3.21 million, down $0.11 million from the prior month, whereas natural gas cash receipts rose to $0.33 million. Total operating expenses were $0.70 million, reflecting a $0.09 million decrease.

Positive

• Monthly cash distribution of $1,119,292.92 reflects ongoing profitability.
• Natural gas cash receipts increased by $0.05 million, driven by higher prices and sales volumes.
• Total direct operating expenses decreased by $0.09 million.

Negative

• Oil cash receipts decreased by $0.11 million due to lower sales volumes.
• Oil production volumes decreased from 31,118 Bbls to 28,114 Bbls compared to the prior month.
• Capital expenses included a $0.09 million refund, indicating potential ownership issues with a well.

FORT WORTH, Texas, Aug. 19, 2022 /PRNewswire/ -- PermRock Royalty Trust (NYSE:PRT) (the "Trust") today declared a monthly cash distribution to record holders of its trust units representing beneficial interests in the Trust ("Trust Units") as of August 31, 2022 and payable on September 15, 2022 in the amount of $1,119,292.92 ($0.092003 per Trust Unit), based principally upon production during the month of June 2022.

The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month net profits interest calculations:

	Underlying Sales Volumes				Average Price
	Oil		Natural Gas		Oil	Natural Gas
	Bbls	Bbls/D	Mcf	Mcf/D	(per Bbl)	(per Mcf)
Current Month	28,114	937	34,980	1,166	$114.14	$9.30
Prior Month	31,118	1,004	33,285	1,074	$106.85	$8.42

Oil cash receipts for the properties underlying the Trust totaled $3.21 million for the current month, a decrease of $0.11 million from the prior month's distribution period.  This decrease was due to a decrease in sales volumes that was only partially offset by an increase in oil prices. 

Natural gas cash receipts for the properties underlying the Trust totaled $0.33 million for the current month, an increase of $0.05 million from the prior month's distribution period. This increase was due to an increase in sales volumes and natural gas prices.

Total direct operating expenses, including marketing, lease operating expenses and workover expenses, were $0.70 million reflecting a $0.09 million decrease from the prior month. Severance and ad valorem taxes were $0.22 million.  

Capital expenses this month were $(0.09) million, a decrease of $0.60 million from the prior month's distribution due to a refund of capital expenses in August. A title opinion was obtained in connection with a recompletion of a well in Crane County, Texas and revealed that the well was only partially owned by the Trust.  In August, Boaz Energy refunded capital expenditures originally charged to the Trust to reflect the Trust's actual ownership interest in the well based on current leases in place.

Boaz Energy informed the Trust that this month's net profits calculation included $880,000 net to the Trust of funds reserved by Boaz Energy to cover future capital obligations and expenses. 

About PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy II, LLC ("Boaz Energy") to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties owned by Boaz Energy in the Permian Basin of West Texas. For more information on PermRock Royalty Trust, please visit our website at www.permrock.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements." These forward-looking statements represent the Trust's and Boaz Energy's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements include the amount and date of any anticipated distribution to unitholders, future cash retentions, advancements or recoupments from distributions, and statements regarding Boaz Energy's operations and the resulting impact on the computation of the Trust's net profits. The amount of cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will continue to be directly affected by volatility in commodity prices, oversupply and the economic effects of the COVID-19 pandemic. Other important factors that could cause actual results to differ materially from those projected in the forward-looking statements include expenses of the Trust and reserves for anticipated future expenses, uncertainties in estimating the cost of drilling activities and risks associated with drilling and operating oil and natural gas wells.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Trust does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Trust to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Trust's Annual Report on Form 10-K filed with the SEC on March 31, 2022 and other public filings filed with the SEC. The risk factors and other factors noted in the Trust's public filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement. The Trust's filed reports are or will be available over the Internet at the SEC's website at http://www.sec.gov.

Contact:          PermRock Royalty Trust
                       Simmons Bank, Trustee
                       Ron E. Hooper, SVP Royalty Trust Management
                       Toll-free: (855) 588-7839
                       Fax: (817) 298-5579
                       Website:  www.permrock.com
                       e-mail:  trustee@permrock.com

View original content:https://www.prnewswire.com/news-releases/permrock-royalty-trust-declares-monthly-cash-distribution-301609043.html

SOURCE PermRock Royalty Trust

FAQ

What is the cash distribution amount declared by PermRock Royalty Trust for August 2022?

The cash distribution declared by PermRock Royalty Trust for August 2022 is $1,119,292.92, or $0.092003 per Trust Unit.

When is the cash distribution payable to unitholders of PermRock Royalty Trust?

The cash distribution to unitholders of PermRock Royalty Trust is payable on September 15, 2022.

What were the oil sales volumes for PermRock Royalty Trust in August 2022?

The oil sales volumes for PermRock Royalty Trust in August 2022 were 28,114 Bbls.

What were the natural gas receipts for PermRock Royalty Trust in August 2022?

The natural gas cash receipts for PermRock Royalty Trust in August 2022 totaled $0.33 million.

How did the total direct operating expenses change for PermRock Royalty Trust?

Total direct operating expenses for PermRock Royalty Trust decreased by $0.09 million, amounting to $0.70 million.